ECONOMYNEXT – Agents for China’s BYD in Sri Lanka, JKCG Auto said it is offering customers Sealion 6 plug in hybrids in place of electric vehicles as a dispute with Customs authorities continue, and called for independent internationally accredited testing to determine motor output.
“…Sri Lanka Customs has appointed a Committee of its own accord,” JKCG said in a statement Tuesday.
“It is our understanding that this Committee is expected to consider some technical matters belatedly raised by Sri Lanka Customs.
“We have consistently maintained, and indicated, our willingness to subject the select vehicle models to testing at an independent, internationally accredited motor laboratory which will help ascertain and clear any concerns regarding the output of the motor capacity of the vehicles.
“This will ensure accuracy, credibility and consistency, and we have already intimated this suggestion to Sri Lanka Customs, during and outside of Court proceedings.”
Sri Lanka Customs detained around 2,000 BYD EVs over a dispute about the motor capacity. In Sri Lanka taxes are charged by the motor ‘capacity’ measured in kilo Watt hours. The tax difference is over two million rupees for some cars.
Authorities have detained vehicles questioning soft-ware limited motors and has not accepted documents submitted from the manufacturer.
“In any event, the globally accepted norm is to rely on the Manufacturer’s Certificate for vehicle clearance which has not been applied to BYD electric vehicles,” the company said.
In the meantime, JKCG said customers who ordered EVs will be given the option to switch to BYD Sealion 6 plug in hybrids for a fee of 200,000 rupees.
JKCG said the customers who ordered EVS could get a refund with interest before October 10, or keep the order until the dispute was resolved.
The firm would continue to accept orders for EVs, but no deposit was required.
The full statement is reproduced below:
Statement by John Keells CG Auto (JKCG)- 30.09.2025
John Keells CG Auto (JKCG) wishes to further update its customers and stakeholders on the ongoing proceedings before the Court of Appeal regarding certain consignments of BYD vehicles detained by Sri Lanka Customs and other related developments.
While we have sought interim relief from the Courts to obtain the release of our electric vehicles (EV), we continue to engage with the Sri Lanka Customs to clear shipments of the remaining vehicles which continue to be unjustly detained.
In the meanwhile, as reported in the media, Sri Lanka Customs has appointed a Committee of its own accord. It is our understanding that this Committee is expected to consider some technical matters belatedly raised by Sri Lanka Customs.
We have consistently maintained, and indicated, our willingness to subject the select vehicle models to testing at an independent, internationally accredited motor laboratory which will help ascertain and clear any concerns regarding the output of the motor capacity of the vehicles.
This will ensure accuracy, credibility and consistency, and we have already intimated this suggestion to Sri Lanka Customs, during and outside of Court proceedings.
We have, in the spirit of co-operation, provided all the necessary information received by us from the Manufacturer to that Committee, and we intend to continue to do so.
We remain mindful of the need for the Committee’s deliberations to be conducted with impartiality and transparency, which we consider essential to maintaining a cooperative and fair engagement, notwithstanding our position that its findings are not binding given our position that independent test verification is the clearest manner to resolve any uncertainty.
In any event, the globally accepted norm is to rely on the Manufacturer’s Certificate for vehicle clearance which has not been applied to BYD electric vehicles.
While we continue to engage with the authorities, the resolution of this matter taking longer than expected has resulted in our inability to commit to a confirmed delivery timeline for our electric vehicle (EV) models, at this moment. This has necessitated us to offer alternate options to our valued customers who have placed their trust in JKCG and have been patient, and understanding, having appreciated the extenuating circumstances.
We have directly contacted all affected customers and continue to engage with them. Customers who made bookings for EVs prior to 11th September 2025 have been offered three options to:
(1) switch to a BYD SEALION 5 with a special discount;
(2) receive a refund with interest (if confirmed by 10th October 2025);
or (3) retain their original booking until Customs determination or litigation proceedings are completed.
We wish to clarify that customers can still place orders for EVs, subject to the uncertain outcome of delivery based on our engagement with the authorities. Considering the uncertainty of delivery and so as to not burden our customers, we will not require payment advances for Electric Vehicle (EV) bookings at this juncture.
We wish to assure our customers that all importation and deliveries of BYD Plug-in Hybrid Electric Vehicles (PHEVs) remain unaffected and will continue as scheduled. We further wish to reiterate and assure our existing valued EV and Plug-in Hybrid customers, that warranties, spare parts, and related services remain fully supported by BYD and JKCG.
As we believe that a fair and level playing field for all vehicle importers is essential to achieving the broader vision of rapid transition to sustainable mobility in the country, JKCG will continue its investments in charging infrastructure, expansion of our showroom network, after-sales service and capacity building. The recently opened Showroom in Moratuwa and our new service facility with the new Wattala Service Center demonstrates our commitment to support the continued growth of the EV footprint in Sri Lanka.
As stated previously, we have extended our full cooperation to all relevant authorities and provided the manufacturer’s specifications and compliance documentation, which are accepted globally, as the authorised distributor for BYD in Sri Lanka. We reiterate our commitment to compliance, and complete transparency with which we have approached this matter from the outset. We wish to thank all our stakeholders and, particularly, our customers for their loyalty, trust and continued understanding and support.